Download PDF

1. Company Snapshot

1.a. Company Description

Givaudan SA, together with its subsidiaries, manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry.The company operates through in divisions, Fragrance & Beauty, and Taste & Wellbeing.The Fragrance & Beauty division offers fine fragrances, consumer products, and fragrance ingredients and active beauty products.


The Taste & Wellbeing division provides beverages, such as carbonated soft drinks, juices, bottled waters, ready-to-drink products, alcoholic beverages, hot drinks, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks comprising rice crackers and cassava chips; savory and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets.It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific.The company was founded in 1796 and is headquartered in Vernier, Switzerland.

Show Full description

1.b. Last Insights on GIVN

Givaudan SA's recent performance has been hindered by a decline in investor sentiment, with its stock price decreasing 5.3% over the past three months. The company's inability to capitalize on the growing demand for clean-label, plant-derived ingredients in the citrus bioflavonoids market has been a significant setback. Furthermore, the market's thriving conditions, driven by rising demand for nutraceuticals, cosmetics, and animal feed, have not been fully leveraged by Givaudan. The company's recent earnings release has not been publicly disclosed, but the lack of visibility into its financial performance has contributed to the negative sentiment.

1.c. Company Highlights

2. Givaudan Delivers Robust H1 2025 Results Despite Macro Headwinds

Givaudan, the global leader in fragrances and taste solutions, reported strong financial performance in its 2025 half-year results, navigating through geopolitical and macroeconomic challenges. The company posted sales of CHF 3.864 billion, reflecting a 6.3% increase on a like-for-like basis, driven by volume growth across all business segments, geographies, and customer groups. Its comparable EBITDA margin reached a record 25.2%, while net income stood at CHF 592 million. This robust performance underscores Givaudan's ability to mitigate external pressures while maintaining profitability.

Publication Date: Jul -24

📋 Highlights
  • Strong Sales Growth:: Sales reached CHF 3.864 billion, up 6.3% on a like-for-like basis, driven by volume growth across all segments.
  • Record EBITDA Margin:: Comparable EBITDA margin hit a record 25.2%, with a net income of CHF 592 million.
  • Fine Fragrances Growth:: Fine Fragrances grew 18%, while Consumer Products saw a 6.1% increase in the Fragrance & Beauty division.
  • Strategic Acquisitions:: Acquired a majority stake in Wolman's Fragrances to strengthen presence in Latin America.
  • Input Cost Management:: Input costs expected to rise by 3%, with pricing increases planned to offset these higher costs.

Segment Performance: Fragrance & Beauty and Taste & Wellbeing

The Fragrance & Beauty division delivered standout results, with sales of CHF 1.955 billion, up 8.6% on a like-for-like basis. Fine Fragrances surged 18%, driven by new business and growth in high-growth markets such as SAMEA (South Asia, Middle East, and Africa). Consumer Products also grew 6.1%, reflecting strong demand across key markets. Meanwhile, the Taste & Wellbeing division reported sales of CHF 1.909 billion, up 4.1%, with solid growth in both high-growth and mature markets. This balanced growth across segments highlights Givaudan's diversified portfolio and its ability to capitalize on evolving consumer preferences.

Strategic Acquisitions and Growth Initiatives

Givaudan announced the acquisition of a majority stake in Wolman's Fragrances, enhancing its presence in Latin America. This move aligns with the company's strategy to strengthen its position in emerging markets. Additionally, Givaudan remains on track to exceed its 2025 strategic commitments, with expected average like-for-like sales growth of 4-5% and a free cash flow margin target. The company will unveil its 2030 strategy at the Summer Investor Conference on August 27, 2025, signaling its commitment to long-term growth and innovation.

Cost Management and Pricing Strategy

Input costs are expected to rise by approximately 3% for 2025, driven by raw material inflation and tariffs. To offset these headwinds, Givaudan is implementing price increases in collaboration with its customers. While pricing is not a growth strategy, it is a necessary measure to protect margins. The company also incurred non-recurring costs of CHF 30 million in the first half, related to acquisitions, restructuring, and project-related expenses, with a similar amount expected in the second half.

Valuation and Financial Health

Givaudan's strong financial performance is reflected in its valuation metrics. The stock currently trades at a P/E ratio of 30.87 and an EV/EBITDA of 21.46, indicating a premium valuation due to its consistent growth and profitability. The company's net debt-to-EBITDA ratio improved to 2.28, showcasing its disciplined approach to capital management. With a free cash flow yield of 4.0% and an ROE of 24.52%, Givaudan demonstrates its ability to generate strong returns for shareholders while investing in growth initiatives.

Market Momentum and Outlook

Givaudan's momentum is evident across key markets, with Fine Fragrances and Consumer Products driving growth. The U.S. business rebounded strongly in the second quarter, while Asia Pacific is expected to recover in the second half after softer growth due to tough comparables. The company's pipeline of new projects remains robust, with a strong focus on innovation and sustainability. As Givaudan looks ahead, its ability to navigate cost pressures and execute its strategic vision will be critical to sustaining its market leadership.

3. NewsRoom

Card image cap

A Look At The Intrinsic Value Of Givaudan SA (VTX:GIVN)

Oct -19

Source:

Card image cap

Givaudan Reports Sales in Line With Expectations, Backs Guidance

Oct -14

Source:

Card image cap

Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

Source:

Card image cap

Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

Source:

Card image cap

Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

Source:

Card image cap

Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

Source:

Card image cap

Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

Source:

Card image cap

Has Evotec’s 29.5% Price Drop Created a New Opportunity for 2025?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.01%)

6. Segments

Taste & Wellbeing

Expected Growth: 6.5%

Taste & Wellbeing's 6.5% growth is driven by consumers' increasing demand for healthier and sustainable products. Givaudan's expertise in plant-based solutions, reduced sugar, and clean label ingredients positions it well to capitalize on these trends. Additionally, the company's innovation capabilities and expanding presence in emerging markets contribute to its growth momentum.

Fragrance & Beauty

Expected Growth: 5.5%

Givaudan SA's Fragrance & Beauty segment growth of 5.5% is driven by increasing demand for premium and niche fragrances, recovery in consumer beauty products, and successful new product launches. Expansion in emerging markets, particularly in Asia-Pacific, and a strong order book also contribute to this growth.

7. Detailed Products

Flavour Compounds

Givaudan's flavour compounds are complex mixtures of natural and synthetic ingredients that create specific taste profiles for food and beverage applications.

Fragrance Oils

Givaudan's fragrance oils are concentrated mixtures of essential oils, aroma compounds, and other ingredients that evoke specific scents for perfumes, personal care products, and home care applications.

Essential Oils

Givaudan's essential oils are concentrated plant extracts obtained through various methods such as distillation or expression, used in flavour, fragrance, and aromatherapy applications.

Aroma Chemicals

Givaudan's aroma chemicals are individual molecules used to create specific scents or flavours, available in both natural and synthetic forms.

Taste Modulation

Givaudan's taste modulation solutions are designed to enhance or modify the taste of food and beverages, including sweetening, savoury, and umami taste solutions.

Food Service Solutions

Givaudan's food service solutions are designed to help foodservice providers create menu items with improved taste, texture, and nutritional profile.

8. Givaudan SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Givaudan SA operates in the flavor and fragrance industry, where substitutes are available but not identical. Customers can switch to other flavor and fragrance providers, but this would require significant reformulation and retesting, which can be costly and time-consuming. The threat of substitutes is medium as there are alternative products available, but they are not perfect substitutes.

Bargaining Power Of Customers

Givaudan SA's customers are primarily large food, beverage, and consumer goods companies. These customers have a significant volume of purchases, but Givaudan SA has a strong market position and a wide range of products, which reduces the bargaining power of customers. Additionally, the switching costs for customers are high due to the complexity of reformulation and retesting.

Bargaining Power Of Suppliers

Givaudan SA's suppliers are primarily providers of raw materials such as essential oils, aroma compounds, and other chemical inputs. While some of these suppliers may have significant market power, Givaudan SA has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, Givaudan SA has a strong procurement function and a history of managing supplier relationships effectively.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the flavor and fragrance industry. New entrants would need to invest significant amounts in research and development, manufacturing capacity, and marketing to compete effectively with established players like Givaudan SA. Additionally, the industry is highly regulated, which creates additional barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the flavor and fragrance industry is high due to the presence of several large players, including Givaudan SA, International Flavors & Fragrances (IFF), and Symrise. These companies compete on factors such as product quality, innovation, and price, which drives rivalry. Additionally, the industry is mature, and growth is relatively slow, which intensifies competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.93%
Debt Cost 4.28%
Equity Weight 49.07%
Equity Cost 7.13%
WACC 5.67%
Leverage 103.78%

11. Quality Control: Givaudan SA passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HeidelbergCement

A-Score: 5.8/10

Value: 4.7

Growth: 5.6

Quality: 5.9

Yield: 4.4

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Air Liquide

A-Score: 5.5/10

Value: 2.2

Growth: 4.8

Quality: 6.5

Yield: 4.4

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Linde

A-Score: 5.0/10

Value: 1.6

Growth: 5.9

Quality: 6.6

Yield: 3.1

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
EMS-Chemie

A-Score: 4.5/10

Value: 1.4

Growth: 2.7

Quality: 8.6

Yield: 2.5

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Sika

A-Score: 4.4/10

Value: 3.4

Growth: 5.7

Quality: 6.0

Yield: 2.5

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Givaudan

A-Score: 4.2/10

Value: 1.1

Growth: 5.0

Quality: 6.0

Yield: 3.8

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3348.0$

Current Price

3348$

Potential

-0.00%

Expected Cash-Flows